Finland: Overall Summary

In Finland, electricity from renewable energy sources is mainly promoted through a premium tariff. The tariff applies to electricity produced from wind, biomass and biogas. Additionally, investments in RES are supported through state subsidies. The main support mechanism for heat produced from RES is a “heat bonus” allocated to CHP plants working on biogas and wood fuel. In transport, the main incentive for renewable energy use is a quota system.

Access to the grid by electricity produced from renewable energy sources follows the principle of non-discrimination and electricity produced from RES is not given priority. The connection of a heat generation plant to the grid is market oriented and priority is not granted to heat produced from RES.

In addition to the methods listed, there are a number of policies in place aiming to promote the development, installations and use of RES installations.

Legislation concerning the current support schemes in Finland has been under major revision for several years now. In November 2016, the Finnish Government presented a report on the National Energy and Climate Strategy for 2030, which will also change the current support schemes for renewable energy development. The most significant change will be the abolition of the current premium tariff system for wind power production and the introduction of tendering. The aim is to support projects that are carried out on market terms in the future. For the transition period, the electricity production subsidy will only be paid to the most cost-effective and competitive investments in renewable electricity production. The current support scheme will be abolished starting from November 2017, when no new wind power plants will be accepted to the tariff system anymore. Biogas and wood fuel based projects would still be eligible for support until the end of 2018. Under the new, temporary support scheme, two separate tendering rounds would be organised: at the end of 2018 and sometime in 2019. The relevant legislation on the new support scheme is currently under discussion in the Parliament of Finland.